The Smart Campaign, a global initiative to improve client protection in the microfinance industry, recently announced revisions to its “Client Protection Principles,” which are intended to help microfinance institutions (MFIs) improve their business through good ethics [1]. The six pre-existing principles have been revised to address multiple financial products instead of focusing on credit alone. Additionally, the principles now address non-discrimination, noting that MFIs should “avoid discrimination in client selection and treatment e.g. on the basis of gender, ethnic origin, religion or disability.”
The changes were precipitated by a task force created for the purpose in 2010 with representation from financial service providers, investors and support organizations.
To view the updated Client Protection Principles, you may visit:
http://www.smartcampaign.org/storage/documents/20110802_Client_Protection_Principles_FINAL_.pdf
The Smart Campaign was founded by US-based nonprofit ACCION International and is housed within at ACCION’s Center for Financial Inclusion in Washington, DC.
By Nisha Koul, Research Associate
About The Smart Campaign: ?The Smart Campaign, which was founded with seed money from US-based nonprofit ACCION International and is located at ACCION’s Center for Financial Inclusion in Washington, DC, is an “effort to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry.” It promotes seven core consumer protection principles including: appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data and mechanisms for complaint resolution. As of February 2011, approximately 1,600 microfinance institutions (MFIs), microfinance support organizations, investors, donors and individual industry professionals have endorsed the Smart Campaign.
Sources and Additional Resources:
[1] Press release, The Smart Campaign, http://www.smartcampaign.org/news-a-highlights/press-releases/36-2011/521-the-smart-campaign-adds-a-seventh-client-protection-principle
MicroCapital.org story, April 5, 2011, “MICROCAPITAL BRIEF: Smart Campaign Releases New Guidance Document, Proposed Revisions to “Client Protection Principles”,” https://www.microcapital.org/microcapital-brief-smart-campaign-releases-new-guidance-document-proposed-revisions-to-client-protection-principles/
MicroCapital.org story, February 22, 2011, “MICROCAPITAL BRIEF: ACCION International’s Smart Campaign to Launch Certification Program for Client Protection in Microfinance,” https://www.microcapital.org/microcapital-brief-accion-international%E2%80%99s-smart-campaign-to-launch-certification-program-for-client-protection-in-microfinance/
MicroCapital.org story, November 9, 2010, “Smart Campaign Partners With African Microfinance Network (AFMIN) and Plan International to Promote Client Protection Among African and Asian MFIs,” https://www.microcapital.org/microcapital-brief-smart-campaign-partners-with-african-microfinance-network-afmin-and-plan-international-to-promote-client-protection-amoung-african-and-asian-mfis/
MicroCapital Universe Profile: The Smart Campaign: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SMART+Campaign#The_SMART_Campaign
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
Similar Posts:
- MICROFINANCE EVENT: Responsible Finance Forum; July 5-7, 3023; Bengaluru, India
- MICROFINANCE EVENT: Sanabel Conference; November 22-23, 2022; Cairo, Egypt
- MICROCAPITAL BRIEF: Cambodia Microfinance Association, NBC Launch Project to Increase Financial Literacy, Consumer Protection
- MICROFINANCE EVENT: Sa-Dhan Conference on Financial Inclusion; November 14-15, 2022; New Delhi, India
- MICROCAPITAL BRIEF: Accion Venture Lab, Brick & Mortar Ventures Lead $3.4m Equity Raise for Licify to Expand Vende+ Construction Portal from Colombia to Mexico